Kuroda Turns Up Heat on Japan Inc.: Turn Profits Into Wages

By

Jacob M. Schlesinger

Nov 24, 2014 11:59 pm ET

The brash Bank of Japan Gov. Haruhiko Kuroda has regularly shown a willingness to break taboos and cross lines. His remarkable speech Tuesday to business leaders was the latest example–he came close to trying to order executives to stop sitting on their rapidly accumulating profits, and to raise worker pay.

“The Bank of Japan has been taking action and will continue to do so,” he told a group of business executives in Nagoya. “I would like to conclude my speech by expressing my expectations for your action” — especially in upcoming negotiations with labor unions. “I have great interest in developments in wage and price setting through spring of next year,” he said.